Stock, Option and Futures Trading
NQ False breakdown
July 12 , 2011
From the post yesterday we were saying if we took out the low of yesterday today we would not be interested in a position type trade to the short side. Scalping is ok because the short term trade was still down BUT it is a extended condition so we would trade less contracts.
You can see from the chart what has happened so far we opened went down hard only to find support and come right back up into yesterdays low. Now we are above that low building support.
This does not mean that low holds forever but what it does mean is we are looking for the market to give us a specific pattern before we take a bigger short type of trade.
The NQ’s could make a move back up to the 2385 from this low.
PS. The point of getting the bigger pattern is to give us the condition on the smaller chart. What is more important the way the 3 minute looks like it is going down or the fact the 60 minute is in support?